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Asian shares showed mixed results as markets awaited U.S. personal spending data. Japan's core inflation rose to 2.7% year-on-year, prompting the dollar to strengthen against the yen. Meanwhile, U.S. Treasury yields fluctuated amid mixed economic reports, with the S&P 500 still on track for a strong year despite recent market struggles.
XRP is gaining momentum, outperforming Bitcoin and Ethereum amid market turbulence following the Federal Reserve's interest rate cuts. Currently priced at $2.32, XRP's resilience is bolstered by whale support and strategic initiatives, positioning it for a potential rise to $30. Meanwhile, Ethereum's whales are actively trading, but XRP's unique fundamentals may give it a competitive edge as both assets vie to break critical resistance levels.
El Salvador has secured a $1.4 billion loan from the IMF, which requires the government to scale back its Bitcoin initiatives to enhance financial stability. The agreement will make Bitcoin usage optional for businesses and limit public sector Bitcoin activities, including the cessation of tax payments in BTC. This shift aims to restore confidence in fiscal policies and attract further international financial support.
Cryptocurrency prices have plummeted, with Bitcoin dropping 7% to $97,000, Ethereum down nearly 12% to $3,422, and Dogecoin tumbling 20% to $0.31. This market correction, triggered by Federal Reserve Chair Jerome Powell's inflation comments, resulted in over $1.2 billion in liquidations, primarily from long positions. Despite the downturn, meme coin Fartcoin surged 71% in the past week, highlighting the ongoing volatility in the crypto sector.
UBS analysts express cautious optimism for stock markets in 2025, noting that six of the seven preconditions for a bubble are met, including earnings pressure and loss of market breadth. The final ingredient, loose monetary policy, is anticipated as the Fed cuts interest rates. UBS suggests investing in sectors like artificial intelligence and electrification, highlighting stocks such as Taiwan Semiconductor Manufacturing and Meta Platforms, while warning that a bubble could lead to significant losses for investors.
Crypto liquidations exceeded $1 billion in 24 hours, primarily affecting long positions, as traders were unprepared for negative market shifts after a bullish month. Analysts suggest this downturn may be temporary, with expectations for a potential "Santa rally" and increased volatility as the market anticipates the incoming Trump administration's impact on crypto policy.
Dogecoin's trading volume surged over 57% to exceed $6.5 billion in the last 24 hours, coinciding with liquidations surpassing $31 million, primarily in long positions. This volatility follows a bearish sentiment triggered by Jerome Powell's speech regarding the US Federal Reserve's rate policies, impacting risk assets like Dogecoin. Analysts suggest that while the current dip may prompt selling, a recovery is anticipated, contingent on Bitcoin's performance.
Dogecoin (DOGE) has experienced a significant decline, losing over 25% of its value in just 36 hours, dropping to a 5-week low of $0.31. Analysts warn that it may test key support levels around $0.22, with potential rebounds targeting $0.40894 and $0.65557, indicating a possible 165% increase if recovery occurs. Investors are advised to monitor the situation closely as volatility remains high in the crypto market.
Robinhood CEO Vlad Tenev discusses the company's rapid growth in the crypto sector, driven by events like election night and the popularity of assets like Dogecoin. He highlights the strategic embrace of stablecoins, staking, and prediction markets, while addressing regulatory changes and the potential of blockchain technology to reduce costs for investors. Tenev also shares insights on how stablecoins can protect wealth amid economic instability.
Hong Kong is expediting its digital assets licensing, with authorities focusing on regulatory improvements and potential inclusion of Bitcoin in reserves, while South Korea's digital asset reforms are stalled due to martial law, delaying key initiatives like securities token offerings and real-name corporate accounts. The political crisis in South Korea has shifted attention away from virtual asset legislation, pushing timelines for reforms to 2025.

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